This module allows you to analyze existing cross correlation between Kraken Bitcoin USD and LakeBTC Bitcoin USD. You can compare the effects of market volatilities on Kraken Bitcoin and LakeBTC Bitcoin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kraken Bitcoin with a short position of LakeBTC Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Kraken Bitcoin and LakeBTC Bitcoin.

Kraken

LakeBTC

Bitcoin on LakeBTC in USD

9,110

46.55

0.51%

Market Cap: 64.7 B

Performance (%)

Timeline

Pair Volatility

Assuming 30 trading days horizon, Kraken Bitcoin USD is expected to under-perform the LakeBTC Bitcoin. In addition to that, Kraken Bitcoin is 1.04 times more volatile than LakeBTC Bitcoin USD. It trades about -0.12 of its total potential returns per unit of risk. LakeBTC Bitcoin USD is currently generating about -0.12 per unit of volatility. If you would invest 1,132,934 in LakeBTC Bitcoin USD on February 17, 2018 and sell it today you would lose (224,163) from holding LakeBTC Bitcoin USD or give up 19.79% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Kraken Bitcoin and LakeBTC Bitcoin

1.0

Parameters

Diversification

No risk reduction

Overlapping area represents the amount of risk that can be diversified away by holding Kraken Bitcoin USD and LakeBTC Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LakeBTC Bitcoin USD and Kraken Bitcoin is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kraken Bitcoin USD are associated (or correlated) with LakeBTC Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LakeBTC Bitcoin USD has no effect on the direction of Kraken Bitcoin i.e. Kraken Bitcoin and LakeBTC Bitcoin go up and down completely randomly.